# How Much Do Solar Panels Cost in 2026? What the Data Shows

> How much do solar panels cost? Two national medians put home solar at $2.57 and $3.60 per watt before incentives, about $19,800 to $27,700 for 7.7 kW.

- URL: https://solarexaminer.com/posts/how-much-do-solar-panels-cost/
- Site: Solar Examiner (https://solarexaminer.com/)
- Category: Solar Costs & Incentives
- Published: 2026-11-05
- Last verified: 2026-11-05
- Author: Craig Leslie

## Key takeaways

- EnergySage put the median solar price at $2.57 per watt in the first half of 2026 ($2.62 for solar-only pricing), before incentives.
- Berkeley Lab's data on systems actually installed in 2025 shows a higher median, about $3.60 per watt (inflation-adjusted) for host-owned, solar-only residential systems, as reported by Mercom. Cash purchases ran lower than loan-financed systems.
- At the 2025 median residential size of 7.7 kW, those prices work out to roughly $19,800 to $27,700 before incentives. Our arithmetic, not a quote.
- Prices vary widely by installer: Berkeley Lab found medians among the top 100 residential installers ranged from $2.4 to $6.3 per watt in 2025.
- The 25D federal tax credit for homeowners does not apply to expenditures made after Dec. 31, 2025. The IRS counts an expenditure as made when installation is completed.



**Two recent national medians put home solar at about $2.57 and $3.60 per watt before incentives, or roughly $19,800 to $27,700 for a 7.7 kW system.** The lower figure is EnergySage's median price for the first half of 2026. The higher one is Berkeley Lab's median for host-owned, solar-only residential systems installed in 2025 (an inflation-adjusted figure, as reported by Mercom). The federal residential clean energy credit for homeowners who buy a system does not apply when installation is completed after Dec. 31, 2025, so these before-incentive prices are no longer reduced by that credit.

Prices vary a lot by installer, state and payment method. Here is what each source measures, what a typical system works out to, and how to tell whether your quote is in line.

## Solar Prices at a Glance

| Source | What it measures | Price |
|---|---|---|
| EnergySage, first half of 2026 | Median price on its marketplace, before incentives | $2.57/W (solar-only quotes: $2.62/W) |
| Berkeley Lab (LBNL), systems installed in 2025 | Median installed price, host-owned (excludes leases and PPAs), solar-only, inflation-adjusted | About $3.60/W (as reported by Mercom) |
| LBNL, 2025, cash purchases | Median installed price | About $3.00/W (as reported by Mercom) |
| LBNL, 2025, loan-financed | Median installed price | About $4.50/W (as reported by Mercom) |
| LBNL, 2025, top 100 installers | Range of each installer's median price | $2.4 to $6.3/W |

Sources: [EnergySage, updated Oct. 7, 2026](https://www.energysage.com/news/home-energy-market-h1-2026-highlights/); [Berkeley Lab, U.S. Distributed Solar and Storage 2026 Data Update, August 2026](https://eta-publications.lbl.gov/sites/default/files/2026-08/distributed_solar_storage-2026_data_update_final.pdf); [Mercom](https://www.mercomindia.com/us-residential-solar-storage-adoption-jumps-to-37-in-2025) for LBNL chart values. All prices are before incentives. "W" means watts of system capacity.

The Berkeley Lab report shows its national medians in charts rather than in its text, so the $3.60, $3.00 and $4.50 figures come from Mercom's reading of those charts. The report's text does confirm that "loan-financed residential systems were considerably higher priced than cash-purchase systems."

## What a Typical System Costs

Price per watt times system size gives the total. Berkeley Lab says "the median U.S. residential system size was 7.7 kW in 2025." A 7.7 kW system is 7,700 watts.

| Price per watt | Basis | 7.7 kW system, before incentives |
|---|---|---|
| $2.57 | EnergySage median quote, H1 2026 | 7,700 × $2.57 = **$19,789** |
| $3.00 | LBNL cash-purchase median, 2025 | 7,700 × $3.00 = **$23,100** |
| $3.60 | LBNL host-owned median, 2025 | 7,700 × $3.60 = **$27,720** |
| $4.50 | LBNL loan-financed median, 2025 | 7,700 × $4.50 = **$34,650** |

These are our calculations from national medians, not quotes. Your system may be larger or smaller. To work out the size you need from your own usage, see [how many solar panels you need](/posts/how-many-solar-panels-do-i-need/).

## Why the Numbers Differ

**Marketplace pricing vs. installed systems.** EnergySage's figure comes from pricing on its own marketplace. Berkeley Lab's data covers a large sample of systems actually installed, dominated by California. They are different samples, so neither is "the" price.

**How you pay.** Berkeley Lab found loan-financed systems "considerably higher priced" than cash purchases. If you plan to finance, compare the loan's total cost with the cash price for the same system.

**Which installer.** In 2025, according to Berkeley Lab, "median prices across the top-100 residential installers ranged from $2.4 to $6.3/W." It found roughly 60% of those installers had medians below $4/W, almost 25% below $3/W and about 10% above $5/W. In other words, which installer you pick can matter a great deal.

**Where you live.** Berkeley Lab says median prices vary across states, and that California, which dominates its sample, "is a relatively low-cost state for residential PV."

**Timing.** The two sources cover different periods and move in different directions. Berkeley Lab says installed prices for host-owned residential systems fell by $0.5/W from 2024 to 2025, adjusted for inflation. EnergySage says its median quote rose about 3% from the second half of 2025 to the first half of 2026.

## Adding a Battery

Berkeley Lab says that "among cash-purchase residential systems, median prices were $2.1/W higher for paired PV+storage" than for solar alone in 2025. It reports a median battery capacity of 13.5 kWh for residential systems with storage.

EnergySage reported battery prices of $1,130 per kWh in the first half of 2026; it does not say exactly what that figure includes. At that price, a 13.5 kWh battery would be about 13.5 × $1,130 = **$15,255**, before incentives. That is our illustration from two different sources, not a quote. For sizing, see [how to size a home battery](/posts/how-to-size-a-home-battery/).

## What Happened to the Tax Credit

The IRS says the residential clean energy credit (Section 25D) "will not be allowed for any expenditures made after December 31, 2025." In its [FAQ on the 2025 law changes](https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb), the IRS explains that an expenditure is treated as made "when the original installation of the item is completed." Paying a deposit in 2025 does not qualify a system finished in 2026.

Leases and power purchase agreements (PPAs), where a company owns the system, have become more common. EnergySage says the share of installers on its platform offering these third-party ownership options rose from about 14% to roughly 41% during the first half of 2026. Ask each installer which state, utility or local incentives, if any, apply to you. Our [solar lease vs. buy guide](/posts/solar-lease-vs-buy/) compares the options without the federal credit.

## How to Check Your Quote

1. **Get the price per watt.** Divide the total price by system size in watts. A $24,000 quote for 8 kW is $24,000 ÷ 8,000 = $3.00/W.
2. **Compare cash with financed.** Ask for the cash price on the same system, so a loan's cost isn't hidden in the system price.
3. **Check what's included.** Installation, permits, equipment, warranties and any sales tax should be stated.
4. **Compare like with like.** Same size, similar panels and inverters, and the same production estimate.
5. **Run the payback.** A fair price still has to pay off at your electric rate.

Our guide to [comparing solar quotes](/posts/how-to-compare-solar-quotes/) walks through eight numbers to check on every proposal, and our [solar payback guide](/posts/solar-payback-period-without-federal-tax-credit/) shows how to work out the break-even year without the federal credit.

## Sources and verification

| Important claim | Source | Status |
|---|---|---|
| Median quote $2.57/W, up about 3%; solar-only $2.62/W; before incentives; battery $1,130/kWh; third-party ownership offered by about 14% to 41% of installers | [EnergySage, updated Oct. 7, 2026](https://www.energysage.com/news/home-energy-market-h1-2026-highlights/) | Verified (industry marketplace data) |
| Median residential size 7.7 kW in 2025; host-owned residential prices fell $0.5/W (real); loan-financed considerably higher than cash; top-100 installer medians $2.4 to $6.3/W; PV+storage $2.1/W higher (cash) | [Berkeley Lab 2026 data update](https://eta-publications.lbl.gov/sites/default/files/2026-08/distributed_solar_storage-2026_data_update_final.pdf) | Verified |
| LBNL 2025 medians (solar-only, inflation-adjusted): $3.60/W host-owned, $3.00/W cash, $4.50/W loan | [Mercom](https://www.mercomindia.com/us-residential-solar-storage-adoption-jumps-to-37-in-2025), reading LBNL charts | Qualified (secondary report) |
| 13.5 kWh median storage capacity, 2025 | Mercom, citing LBNL | Qualified (secondary report) |
| 25D not allowed for expenditures after Dec. 31, 2025; made when installation is completed | [IRS FAQ](https://www.irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-30c-30d-45l-45w-and-179d-under-public-law-119-21-139-stat-72-july-4-2025-commonly-known-as-the-one-big-beautiful-bill-obbb) | Verified |
| System cost and battery cost totals | Our arithmetic from the figures above | Calculated |

Checked Nov. 5, 2026. Prices are national medians before incentives, not quotes for any specific home.

## Frequently asked questions

### How much does a typical home solar system cost in 2026?

Before incentives, recent data points to about $2.57 to $3.60 per watt. For a 7.7 kW system, the 2025 median residential size in Berkeley Lab's data, that is roughly $19,800 to $27,700. Your price depends on your installer, state, roof, equipment and how you pay.

### Why do different sources give different solar prices?

They measure different things and periods. EnergySage reports pricing from its marketplace for the first half of 2026. Berkeley Lab reports prices of systems actually installed in 2025, including loan-financed systems, which it found were considerably more expensive than cash purchases.

### Can I still get the federal solar tax credit?

Not for a system you buy for your home if installation is completed after Dec. 31, 2025. The IRS says the 25D credit is not allowed for expenditures made after that date, and an expenditure is made when original installation is completed.

### How much does adding a battery add to the cost?

Berkeley Lab found that among cash-purchase residential systems installed in 2025, median prices were $2.1 per watt higher for solar paired with storage than for solar alone. EnergySage reported battery prices of $1,130 per kWh in the first half of 2026, without saying exactly what that figure includes.

### Is a lower price per watt always the better deal?

Not always. Compare the same system size, equipment, warranties and what is included, such as permits and installation. A low price on a smaller or lower-quality system can still cost more per kWh produced.


Image credit: Photo by Sergio Martins on [Unsplash](https://unsplash.com/photos/solar-panels-installed-on-a-grey-corrugated-metal-roof-0b3KYOuSNho?utm_source=solarexaminer&utm_medium=referral)